An SREC is a Solar Renewable Energy Certificate. In Massachusetts, the Green Communities Act of 2008 requires utilities in the state to generate at least 15% of their electricity from renewable sources by 2020. One way they can meet this requirement is by purchasing SRECs from solar PV system owners. SREC values are determined by fundamental supply and demand dynamics in the marketplace. One SREC equals 1000 kilowatt hours (kWh) of electricity produced and can range in value from $250 to $385.